Abstract

http://ssrn.com/abstract=886417
 
 

Citations (5)



 


 



Reformulating Competition?: Gasoline Content Regulation and Wholesale Gasoline Prices


Jennifer L. Brown


Arizona State University (ASU) - W.P. Carey School of Business

Justine S. Hastings


Brown University; National Bureau of Economic Research (NBER)

Erin T. Mansur


Dartmouth College - Dartmouth Economics Department; National Bureau of Economic Research (NBER)

Sofia Berto Villas-Boas


University of California, Berkeley - Agricultural & Resource Economics

January 2006

University of California CUDARE Working Paper No. 1010

Abstract:     
The 1990 Clean Air Act Amendments stipulated gasoline content requirements for metropolitan areas with air pollution levels above predetermined federal thresholds. The legislation led to exogenous changes in the type of gasoline required for sale across U.S. metropolitan areas. This paper uses a panel of detailed wholesale gasoline price data to estimate the effect of gasoline content regulation on wholesale prices and price volatility. In addition, we investigate the extent to which the estimated price effects are driven by changes in the number of suppliers versus geographic segmentation resulting from regulation. We find that prices in regulated metropolitan areas increase significantly, relative to a control group, by an average of 3.6 cents per gallon. The price effect, however, varies by ten cents per gallon across regulated markets and the heterogeneity across markets is correlated with the degree of geographic isolation generated by the discontinuous regulatory requirements.

Number of Pages in PDF File: 37

Keywords: environmental content regulation, wholesale gasoline markets

JEL Classification: L13, L51, Q50

working papers series


Download This Paper

Date posted: March 2, 2006  

Suggested Citation

Brown, Jennifer L. and Hastings, Justine S. and Mansur, Erin T. and Villas-Boas, Sofia Berto, Reformulating Competition?: Gasoline Content Regulation and Wholesale Gasoline Prices (January 2006). University of California CUDARE Working Paper No. 1010. Available at SSRN: http://ssrn.com/abstract=886417 or http://dx.doi.org/10.2139/ssrn.886417

Contact Information

Jennifer L. Brown
Arizona State University (ASU) - W.P. Carey School of Business ( email )
Tempe, AZ 85287-3706
United States
(480)965-6618 (Phone)
(480) 965-8392 (Fax)
Justine Hastings
Brown University ( email )
Box 1860
Providence, RI 02912
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Erin T. Mansur
Dartmouth College - Dartmouth Economics Department ( email )
Hanover, NH 03755
United States
603 646 2531 (Phone)
603 646 2122 (Fax)
HOME PAGE: http://www.dartmouth.edu/~mansur/
National Bureau of Economic Research (NBER) ( email )
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
Sofia Villas-Boas (Contact Author)
University of California, Berkeley - Agricultural & Resource Economics ( email )
310 Giannini Hall # 3310
Berkeley, CA 94720
United States
510-643-6359 (Phone)
510-643-8911 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 2,343
Downloads: 174
Download Rank: 99,200
Citations:  5

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.281 seconds